The case of Truong My Lan, a Vietnamese real estate tycoon sentenced to death in the country’s biggest financial fraud case, has shocked the nation. Lan was arrested in 2022 and charged with fraud amounting to $12.5 billion, nearly 3% of the country’s GDP. Lan, who started out selling cosmetics with her mother and went on to establish the Van Thinh Phat company, is accused of using a bank as a cash cow, illegally controlling it between 2012 and 2022, resulting in losses of $27 billion. She was also accused of paying bribes to government officials and violating banking regulations.
Lan’s arrest is part of an ongoing anti-corruption drive in Vietnam that has intensified since 2022. The case, which has raised questions about other banks or businesses potentially engaging in similar fraudulent activities, has dampened Vietnam’s economic outlook and made foreign investors nervous. This crackdown on corruption comes at a time when Vietnam is trying to position itself as the ideal destination for businesses looking to move away from China. Former President Vo Van Thuong resigned after being implicated in the “Blazing Furnace” campaign, highlighting the scale of corruption within the country.
The court sentenced Lan to death, emphasizing that her actions not only violated property management rights but also eroded people’s trust in the Communist Party and state. Lan’s involvement in the 2011 merger of the Saigon Joint Commercial Bank with two other lenders, using thousands of “ghost companies” to give loans to herself and her allies, led to the significant losses. Her connection to high-profile government officials and the scale of the fraud has brought attention to the issue of corruption within Vietnam’s financial sector.
Lan, who is married to Hong Kong investor Eric Chu Nap-kee and has two daughters, built a successful real estate company over the years, owning valuable properties in Ho Chi Minh City such as Times Square Saigon and the Windsor Plaza Hotel. Her rise to prominence in Vietnam’s real estate market and subsequent fall due to the financial fraud case has shocked many in the country. While death sentences are not uncommon in Vietnam, they are rare in financial crime cases, especially for someone as well-known as Lan.
The trial of Truong My Lan has highlighted the extent of corruption within Vietnam’s financial sector and the government’s commitment to cracking down on such activities. The case has sparked concerns among foreign investors about the stability of the Vietnamese market and raised questions about the integrity of other banks and businesses in the country. The outcome of Lan’s trial and the subsequent impact on Vietnam’s economy and reputation will be closely monitored by both domestic and international stakeholders.
